Question

13 prepare journal entries to record the following transactions for emerson corporation. note: if no entry is required for a transaction/event, select
o journal entry required\ in the first account july 15 declared a cash dividend payable to common stockholders of $162,000. august 15 date of record is august 15 for the cash dividend declared on july 15. august 31 paid the dividend declared on july 15. journal entry worksheet 1 2 3 record the declaration of a cash dividend payable to common stockholders. note: enter debits before credits. date general journal debit credit july 15

Explanation:

Step1: Record July 15 transaction

When a cash dividend is declared, we debit the Dividends account (to record the decrease in retained earnings) and credit the Dividends Payable account (to record the liability).
Debit: Dividends $162,000
Credit: Dividends Payable $162,000

Step2: Record August 15 transaction

On the date of record (August 15), no journal entry is required. This date is just to determine which shareholders are eligible to receive the dividend.

Step3: Record August 31 transaction

When the dividend is paid (August 31), we debit the Dividends Payable account (to remove the liability) and credit the Cash account (to record the outflow of cash).
Debit: Dividends Payable $162,000
Credit: Cash $162,000

Answer:

For July 15:

Date	General Journal	Debit	Credit
	Dividends Payable		$162,000

For August 15: No journal entry required.

For August 31:

Date	General Journal	Debit	Credit
	Cash		$162,000